FMP

FMP

Edible Garden AG Incorporated's Financial Challenges and Opportunities

  • Edible Garden AG Incorporated (NASDAQ:EDBL) reported an earnings per share (EPS) of -$1.38, missing the estimated EPS of -$0.51.
  • The company's revenue for Q3 2025 was $2.82 million, below the estimated $3.88 million but showed a 9% year-over-year increase.
  • Despite financial challenges, EDBL's sales of non-perishable consumer packaged goods (CPG) units surged by 49.3% year-over-year.

Edible Garden AG Incorporated, trading on the NASDAQ under the symbol EDBL, is a company focused on controlled environment agriculture (CEA) and consumer packaged goods (CPG). The company is known for its hydroponic basil, potted herbs, and wheatgrass. Despite its innovative approach, EDBL faces competition from other CEA companies and traditional agriculture businesses.

On November 14, 2025, EDBL reported its earnings before the market opened. The company posted an earnings per share (EPS) of -$1.38, which was significantly lower than the estimated EPS of -$0.51. This indicates that the company is currently experiencing financial challenges, as highlighted by its negative price-to-earnings (P/E) ratio of approximately -0.27.

EDBL's actual revenue for the third quarter of 2025 was $2.82 million, falling short of the estimated $3.88 million. Despite this, the company reported a 9% increase in revenue compared to the same period in 2024, driven by a strategic shift towards a consumer packaged goods model. Sales of non-perishable CPG units surged by 49.3% year-over-year, showcasing the company's growth potential.

The company's financial metrics reveal some challenges. The enterprise value to operating cash flow ratio is negative at around -0.58, indicating potential difficulties in generating cash flow from operations. Additionally, the earnings yield is negative at approximately -3.66%, further highlighting the company's current unprofitability.

Despite these challenges, EDBL maintains a relatively low debt-to-equity ratio of approximately 0.25, suggesting a manageable level of debt compared to equity. However, the current ratio of about 0.80 indicates potential difficulties in covering short-term liabilities with short-term assets. This financial landscape presents both challenges and opportunities for EDBL as it navigates its strategic evolution.